The Sacramento Municipal Utility District (SMUD) has approved energy efficiency goals that will prime the region to be one of the most energy efficient in California. The goals surpass state requirements for energy efficiency by 50 percent.

SMUD's board of directors approved the program in mid-May, which aims to help customers reduce total energy consumption over the next 10 years by 15 percent, exceeding the state requirement of 1 percent each year for the next 10 years or 10 percent. The higher efficiency level would reduce peak generation requirements by 570 megawatts by 2017, and reduce greenhouse gas emissions by nearly 1 million metric tons.

SMUD added the goal to reduce energy used during the peak demand periods of hot summer afternoons in an effort to avoid expensive power purchases and reduce overall generation.

To achieve the 1.5 percent annual energy-saving target, SMUD will speed up energy efficiency programs for customers over the next 2 years, which will entail redesigning and adding some new programs. SMUD will also change how it reaches out to customers and the community to achieve more participation in energy efficiency programs.

For its commercial customers, SMUD will expand energy- and money-saving programs for high-efficiency air conditioners, building construction, refrigeration, and consumption-control measures.

While increasing energy efficiency goals by 130 percent from 0.6 percent to 1.5 percent of annual energy consumption, SMUD estimates spending for the programs to increase only 80 percent. The plan will cost $34 million next year, would rise to $40 million in 2009, and to $45 million in 2010. Through 2017, the cost is expected to average $45 million per year.